DRI Cup And Handle

By Johns Wu on Dec 11, 2005

I don't really scan for cup/handle patterns because I'm not really experienced with them, but DJ wrote in to point out that DRI may have formed a cup/handle.

I know you guys are chart guys — please look at darden restaurants (DRI) – look specifically at a one year daily chart. I see a deadly cup and handle formation (looks like DRI is in the "handle stage") this stock could really take off soon.

Thanks for writing in, DJ.

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This entry was posted on Sunday, December 11th, 2005 at 6:58 pm and is filed under Market News. You can skip to the end and leave a response. Pinging is currently not allowed.

7 Responses to “DRI Cup And Handle”

By muckdog on December 11th, 2005 at 7:28 pm

Seems like cup and handles are the most recent TA favorite. That and point and figure charts. I don’t like either, to be honest.

I like eating at Red Lobster, though.

By THE BULL TRADER on December 11th, 2005 at 7:36 pm

i like eating at red lobster too

By a on December 12th, 2005 at 1:30 am

Could be due for a move up. Wouldn’t advise jumping the gun with the chart being deadly though. Depending on how often DJ checks up on it…watchlist or set an alert/limit order. NOT ADVICE (As far as your legal team knows) Blah, blah, blah.

On an unrelated note:

What if the Red Lobster gets loose in the Olive Garden?

-a

By DJ/catablast.com on December 12th, 2005 at 12:35 pm

A says: Could be due for a move up. Wouldn’t advise jumping the gun with the chart being deadly though.

A, I meant “deadly” in a good way — meaning you could make some “killer gains.”

Sorry, I should have been more clear.

As far as the Red Lobster getting loose in the Olive Garden, please explain what you mean.

If you mean: will red lobster eaters defect to Olive garden? — the answer is no.

That’s why we like the stock. In addition, Darden’s P/E multiple is an aberration that the market hasn’t fully investigated. Darden’s peers trade at 24 X next year EPS; DRI only trades at less than 18 X forward EPS.

Something has to give, even if its just a 5 or 6 point gain from here…..

By a on December 13th, 2005 at 3:01 am

I knew what you meant by deadly, just being sarcastic.

The sarcasm continues in the Red Lobster comment. Is defection what I meant? No. More humor, which apparently doesn’t translate. However, I wouldn’t care much because they are both owned by Darden. See links like…
http://www.business.com/directory/food_and_beverage/restaurants_and_foodservice/darden_restaurants_inc/

While I’m not taking it quite so seriously, I wish you luck with the stock. Sorry about the confusion.

-a

By DJ on December 16th, 2005 at 10:06 am

Man our call hit the nail on the head!

DRI is up 10% since we all started talking about it here at thebulltrader!

thanks, compadres!

Did ya’ll see the Freidman Billings upgrade?

By a on December 18th, 2005 at 7:46 pm

Congrats, DJ.

-a